According to the Food and Agriculture Organization, the El Nino weather phenomena affected production in India and Thailand, sending sugar prices worldwide to their highest level in nearly 13 years in September.
The FAO’s Sugar Price Index increased by 9.8% compared to August, reaching its highest level since November 2010, while global food prices remained stable overall last month.
The central and eastern tropical Pacific Ocean normally see higher ocean surface temperatures during El Nino, a climate phenomenon that happens on average every two to seven years.
The phenomena began in July, according to the World Meteorological Organization of the UN, and it can endure for nine to twelve months.
Due to growing worries about a tighter global supply forecast in the 2023–2024 season, the FAO’s Sugar Price Index has now increased for two straight months.
“This mainly reflects early forecasts pointing to production declines in key sugar producers, Thailand and India, due to drier-than-normal weather conditions associated with the prevailing El Nino event,” the FAO said.
“Higher international crude oil prices also contributed to the increase in world sugar prices,” it added.
